Benefits Of Credit Cards You Should Be Aware Of

By Author: Anujit Bhattachaarya
Total Articles: 25
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One of the best financial instruments is credit cards. Also called plastic money, this tool helps you pay for the expenses without the funds getting debited from your account. These cards work you can buy online or at the store and pay them a lump sum monthly. You can adjust the payment when you have an inflow of cash in your savings account. Indeed, the benefits of these cards surpass the usage. 
Here are the benefits of credit cards you should be aware of: 
Swipe in emergencies
The best part about using a credit card is they are beneficial when you have an emergency scenario. You get strapped for cash while travelling to an international country or require urgent hospitalisation, for which you need to make an upfront payment. In such cases, funds come to your rescue. 
Alternative to cash
Earlier, you had to pay cash for all the purchases. Ever since demonetisation in India, the economy has gone cashless. Today, all the big and small vendors accept credit cards. But there are some risks associated, especially if the wallet gets stolen. You could ...
... lose all the money, but the card remains safe. You can get the card blocked immediately so that it does not get used by anyone. 
Interest-free credit
When you apply credit card, the best part is that you pay for the purchases without having to pay interest. As such, you do not accrue any additional interests and pay back your card issuer the exact amount of the expense monthly. However, the interest-free advantage applies only if you clear your entire outstanding dues within the fixed date. 
Purchasing power increases 
Such cards come with higher credit limits, inclusive of those who surpass their actual monthly income. When you need to spend on big tickets like trips and associated costs, gadgets, etc., you can swipe the credit cards without worrying about draining the funds from your savings. 
Earn reward points
Online card expenses help you earn reward points. You gain them for every rupee you spend on the card. Besides, you earn free reward points on your different occasions like birthdays, anniversaries, and more. Such points have a specific cash value associated. Redeem them for products and shopping gift vouchers available on the credit card issuers portal. 
Credit score improves
Using credit cards boosts your credit ratings. These scores are mandatory while applying for the loan. Your lender checks the score for deciding your creditworthiness. If you have good repayment behaviour, your score improves massively, making it easy to get loans in the future. 
Apart from these, you also receive other benefits on specific cards like concierge services, access to airport lounges, life insurance, airlines, and hotel reward points, and more.